Intermediate Accounting 1
Chapters 1 and 2 Questions
Accurate Answers
account correct answer a systematic arrangement that shows the effect of
transactions ad other events on a specific element.
accounting cycle correct answer the process by which a company uses to record
transactions and prepare financial statements
accounting information system correct answer collects and processes transaction
data and then disseminates the financial information to interested parties.
Accounting Principles board (apb) correct answer created in 1959 by the aicpa, its
purposes were to:
1) advance the written expression of accounting principles.
2) determine appropriate practices.
3) narrow the areas of difference and inconsistency in practice.
Accounting Research Bulletins correct answer issued by CAP between 1939 and
1959 to deal with a variety of accounting problems.
accounting standards executive committee acSEC correct answer the committee
authorized to speak for the aicpa.
, accounting standards updates correct answer amend the accounting standards
codification, which represents the source of authoritative accounting standards,
other than standards issued by the sec.
accrual-basis accounting correct answer recognizing revenue when the
performance obligation is satisfied and expenses in the period incurred, without
regard to the time of receipt or payment of cash.
accrued expense correct answer expenses incurred but not yet paid or recorded
at the statement date.
accrued revenues correct answer revenues for services performed but not yet
recorded at the statement date.
adjusted trial balance correct answer is taken immediately after all adjustments
have been posted.
adjusting entries correct answer entries made at the end of an accounting period
to bring all accounts up to date on an accrual basis, so that the company can
prepare correct financial statements.
american institute of certified public accountants (AICPA) correct answer the
national professional organization of practicing CPAs.
APB Opinions correct answer the official 31 pronouncements from the apb.
auditing standards board correct answer part of the aicpa, is responsible for
developing auditing standards.
Chapters 1 and 2 Questions
Accurate Answers
account correct answer a systematic arrangement that shows the effect of
transactions ad other events on a specific element.
accounting cycle correct answer the process by which a company uses to record
transactions and prepare financial statements
accounting information system correct answer collects and processes transaction
data and then disseminates the financial information to interested parties.
Accounting Principles board (apb) correct answer created in 1959 by the aicpa, its
purposes were to:
1) advance the written expression of accounting principles.
2) determine appropriate practices.
3) narrow the areas of difference and inconsistency in practice.
Accounting Research Bulletins correct answer issued by CAP between 1939 and
1959 to deal with a variety of accounting problems.
accounting standards executive committee acSEC correct answer the committee
authorized to speak for the aicpa.
, accounting standards updates correct answer amend the accounting standards
codification, which represents the source of authoritative accounting standards,
other than standards issued by the sec.
accrual-basis accounting correct answer recognizing revenue when the
performance obligation is satisfied and expenses in the period incurred, without
regard to the time of receipt or payment of cash.
accrued expense correct answer expenses incurred but not yet paid or recorded
at the statement date.
accrued revenues correct answer revenues for services performed but not yet
recorded at the statement date.
adjusted trial balance correct answer is taken immediately after all adjustments
have been posted.
adjusting entries correct answer entries made at the end of an accounting period
to bring all accounts up to date on an accrual basis, so that the company can
prepare correct financial statements.
american institute of certified public accountants (AICPA) correct answer the
national professional organization of practicing CPAs.
APB Opinions correct answer the official 31 pronouncements from the apb.
auditing standards board correct answer part of the aicpa, is responsible for
developing auditing standards.
